New natural gas pricing formula by Sept 30 says Govt 13/08/2014

New natural gas pricing formula by Sept 30 says Govt
13/08/2014 15:30
Government is likely to come out with a new natural gas pricing formula by September 30 keeping in mind the interest of investors and public, reported PTI. Oil Minister Dharmendra Pradhan , while replying to a question in Rajya Sabha, said the NDA government decided to review the pricing formula keeping in mind public interest and recommendations of the Parliamentary Standing Committee. However, the details were not disclosed but the Minister said that the decision will be taken keeping in mind interest of investors and public and the formula will be announced by September 30. The new government on June 25 decided to defer the implementation till September-end to hold wider consultations. The existing gas pricing under New Exploration Licensing Policy (NELP) was approved in 2007 and was to remain valid up to March 2014. For reviewing the formula, the government constituted a committee under C Rangarajan in May 2012 and based on the panel's recommendation, Domestic Natural Gas Pricing Guidelines, 2014 was notified in January this year. The Rangarajan formula would lead to doubling of natural gas prices to USD 8.4 per million British thermal unit, an increase that would jack up urea production cost, electricity tariff and CNG rates.